Reasons why US consumers use BNPL services

Summary List Placement

Buy now, pay later (BNPL) solutions, which allow consumers to pay in interest-free installments, are continuing to grow in popularity as people seek alternative methods of financing—a trend exacerbated by the coronavirus pandemic. And with the swelling market comes heightened competition amongst financial services companies.

Below, Insider Intelligence breaks down how some of these companies stack up, and what business models they are adopting to find success within the shifting market. 

Ecommerce Financing Growth During COVID

The coronavirus pandemic accelerated ecommerce market growth, which in turn increased the demand for easy online financing options. Because BNPL products are native to online shopping, the surge in ecommerce boosted these providers’ reach. 

The pandemic left millions of consumers unemployed and financially insecure, and in need of greater flexibility with their purchases. On the other hand, many consumers actually paid off debt during the crisis, making interest-free BNPL solutions an attractive alternative to racking up another high credit card balance. 

Buy Now Pay Later Market

The BNPL industry has modernized layaway and installment payments to offer consumers flexible payment options for their purchases. Compared to credit cards, intended to be used repeatedly, BNPL solutions are applied to individual transactions—appealing to consumers who want to make less of …read more


Source:: Businessinsider – Finance

      

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